Market Round-Up

The British–Australian multinational mining company Rio Tinto has announced that it will acquire Mitsubishi Corporation’s 11.65% share in Boyne Smelters. The amount has not yet been disclosed.

Boyne Smelters (BSL) is a joint venture which has been operating since 1982. It is Australia’s second largest aluminium smelter, with activities including manufacturing carbon anodes, smelting and the casting of molten metals into aluminium products.

Rio Tinto currently has a 59.4% ownership, which will become 73.5% after the completion of both its deals. Set to finalise in the second half of 2024, this consists of the Mitsubishi Corporation stake and the Sumitomo Chemicals stake (2.46%) which was agreed in May. 

Shares of the British computing firm Raspberry Pi soared 31% on the first day of its conditional dealing 12^th June. This is when shares are bought before a company’s trading date and it is only open to certain institutions, with the shares being conditional on the company listing, and only settling once they are open to everyone else. 

After announcing on 22nd May 2024 that the company intended to float on the stock exchange, Raspberry Pi confirmed on 11^th June that its Initial Public Offering (IPO) would take place on Friday 14th June, enabling retail investors access to the company from this date. Currently, the company implies a market valuation of £540m, with the offer size representing 30% of its ordinary shares. The offering encompasses 45.9m shares at an offer price of 280p per share.

The company is headquartered in Cambridge and engages in the development, manufacturing and marketing of cost-effective computing devices. It was established by CEO Eben Upton in 2012, with the aim of making computing accessible to young people. So far, the company has seen success, with its revenues in 2023 amounting to US$265.8m, an increase of 41% from the previous year.

This is a positive for the London Stock Exchange (LSE) since it has recently struggled to attract technology listings, with companies preferring to list in other European countries and the United States. While it is still relatively small compared to its peers Sony and Arm, this new IPO brings hope.

Please note that this communication is for information only and does not constitute a recommendation to buy or sell the investments mentioned. Investments and income arising from them can fall as well as rise in value. The information and views were correct at time of publication but may have changed at point of reading.